Bitcoin (BTC) Price Trading Analysis June 14: Market Outlook Bullish Continuation, Here’s Why

Bitcoin (BTC) Price Trading Analysis June 14: Market Outlook Bullish Continuation, Here’s Why

After two weekly closes in candlestick patterns indicative of price consolidation, an inverted hammer followed by a long-legged doji, with little movement from open to close, BTC/USD surged late on Sunday to close the weekly session at $39,013, up 9% from the week prior.

Last week was arguably one of the most significant weeks in Bitcoin’s history, as El Salvador passed a bill on Tuesday recognizing Bitcoin as legal tender, the first to do so with indications more Latin American countries may follow suit.

Later on Tuesday, the President of El Salvador proposed mining Bitcoin using hydrothermal power from active volcanoes in the country, of which there are 20, and work to set up mining farms has already begun in earnest.

Then on Saturday, Bitcoin’s most consequential upgrade since SegWit, Taproot, was locked in via a speedy trial miner signaling process with near-universal support, a stark contrast from the fractious saga SegWit had to endure before activation through UASF (User Activated Soft Fork).

Taproot brings privacy and scaling improvements to the Bitcoin protocol. But the real game-changer is that it enables even the most complex off-chain smart contracts on layer-2 protocols or sidechains to execute as a regular transaction on-chain. This could spell the beginning of the end for altcoins.

With such bullish developments both on and off-chain, last week saw the largest net outflow from exchanges this year by a significant margin. Large outflows indicate movement of coins to long-term HODL wallets.

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For most of the week, though, the price action remained sluggish, but this was because in a ranging market following a significant drawdown, bulls tend to stagger their bids so as to not move the market too much, allowing them to lower average cost and accumulate without slippage.

The chart below could be used as a teaching guide for the Wyckoff accumulation phase. It’s absolutely unerring, and it became clear part-way through the phase that market makers were cognizant of this, hence the lack of kneejerk market reaction to the news from El Salvador.

BTC4

After establishing preliminary support (PS), an automatic rally (AR) was rejected at the S/R flip at $43,000, price then remained ensconced within the established trading range before dipping below the established support level of the range to “spring” in a dragonfly doji pattern and breaking out at the end of the week following one last retest of the support.

A break above the range’s resistance level by daily close would confirm SOS (sign of strength) and completion of the accumulation phase into a bullish reversal.

Successive daily RSI divergence (charted below) was further confirmation of price bottom. Breakout from a descending channel was confirmed on Sunday. The price target for the breakout roughly coincides with the 0.382 Fibonacci retrace level and 50ma.

BTC3

Speaking of 50ma, a death cross could be imminent unless the price rallies significantly over the next couple of days. However, we’ve seen this occur in the past where the 50ma has recovered to break above the 200ma again in short order. Momentum over the next week or two leading to monthly close will determine if that proves to be the case.

Market Summary

  • Key support levels – $38,300, $37,400
  • Key resistance levels – $40,900, $43,000
  • Market outlook – Bullish continuation

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Author: Lamps T

Ethereum (ETH) Price Trading Analysis June 14; Market Outlook Is Slightly Bearish, Here’s Why

Ethereum (ETH) Price Trading Analysis June 14; Market Outlook Is Slightly Bearish, Here’s Why

ETH/USD had been showing signs of decoupling from BTC/USD since late April. But the real test was to come when the latter started making significant moves. The last couple of weeks have decisively put paid to any such notions.

Bullish developments in Bitcoin this past week seemed to affect all altcoins adversely, as ETH/USD closed the week at $2,510 in a dark cloud cover pattern, down 7.5% from the previous week.

ETH/BTC broke down from a rising wedge pattern on Wednesday (charted below) and has since continued to slide down, acquiring the breakout target of 0.062 BTC during Asian trading hours on Monday.

ETH2

ETH/BTC has dropped below 50ma on the daily for the first time since breaking out from a falling wedge at the beginning of April. This is now likely to flip to resistance. An RSI double bottom recovery is something to keep an eye on over the next couple of days. A daily close above the previous swing high would confirm the reversal pattern.

Looking at the ETH/USD chart below, while the primary trend line dating back to January still holds, the pair is currently on shakier ground than it’s ever been in the past few months unless an immediate recovery materializes.

ETH1

Critically, Chaikin Money Flow (CMF) has turned negative for the first time this year, indicating that sell pressure is outpacing buy pressure and has thus far failed to recover past the 0.20 level, which is often identified as the level used to confirm a decisive reversal.

The immediate target for ETH/USD is to reclaim the 0.236 Fibonacci level and mount another rally to breach 0.382, where the price has already been rejected multiple times. A rejection at the 0.236 level could result in the pair breaking down below the primary trend line, turning the market outlook bearish.

Market Summary

  • Key support levels – $2,250, $2,100
  • Key resistance levels – $2,600, $2,900
  • Market outlook – Slightly bearish

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Author: Lamps T

Bitcoin Surges Above $41k — MacroStrategy, PTJ, FOMC Meeting, BCIE ‘Adopting BTC for Legal Use’

Today, the price of Bitcoin surged to hit $41,076 on Coinbase, last seen on May 21st.

While up more than 32% from last week’s low of $31,000, it’s hard to know if the cryptocurrency will be able to continue its way up towards the all-time high of $65,000 or people will use this bounce to exit after the recent sell-off.

For now, the market is enjoying greens today, which comes packed with a lot of good news.

For starters, MicroStrategy announced on Monday the completion of its $500 million offering of 6.125% senior secured notes due 2028. This will be used to buy even more Bitcoin and add to the company’s stash of 92,079 BTC that are being held in a newly formed subsidiary, MacroStrategy LLC.

MicroStrategy shares are also enjoying an uptrend, going past $600, last seen in early May. The company has yet to buy BTC with the latest proceeds.

As we reported today, billionaire investor Paul Tudor Jones is very bullish on Bitcoin as a portfolio diversifier and wants to have 5% of his portfolio in Bitcoin, the same percentage as gold, cash, and commodities.

“So, I like that idea of investing in something reliable, honest, secure, and 100 percent certain.” “Bitcoin has an appeal to me in being able to invest in certainty.”

PTJ’s net worth is $7 billion, which would put this 5% at $350 million, while his hedge fund Tudor Investment Corporation has about $44 billion assets under management (AUM) which would put this 5% at $220 million, not including his 2% Bitcoin allocation from last year.

The hedge fund manager is paying close attention to the Federal Reserve’s two-day policy June meeting this week, which is scheduled to conclude Wednesday.

According to Jones, if the Fed treats recent higher consumer prices with nonchalance, that is the “green light to bet heavily on every inflation trade” — “then I would just go all-in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold,” he said.

But if they throw a “taper tantrum,” that would mean correction, but “that doesn’t necessarily mean it’s over,” he added.

According to Goldman Sachs, it’s too early for Fed Chairman Jerome Powell to begin the “taper clock,” they expect the first hint to be delivered in August or September.

“Powell likely agrees with Governor Brainard and President Williams that the labor market has not yet come far enough,” noted GS.

Additionally, Tesla CEO Elon Musk, who sent the prices crashing last month, helped bolster the positive sentiments after he said the electric car maker would accept Bitcoin payments once miners start using 50% clean energy.

As we reported, the world’s sixth-largest, $10 trillion economy India, a G20 member, is also planning to classify the cryptocurrency as an asset class.

Already, El Salvador has become the world’s first country to declare Bitcoin legal tender. While using BTC for payments, the country will also use volcanic geothermal energy to mine the cryptocurrency.

Now, the Central American Bank for Economic Integration, which is made up of 17 member states, is sharing their support for El Salvador’s Bitcoin move, calling it a “really big deal,” adding, “we’re really proud that they’ve made us part of this new policy.”

“The signal that I want to leave you today is that the BCIE is accompanying El Salvador in this new and innovative policy of adopting the cryptocurrency called Bitcoin for legal use,” said president Dante Mossi.

He further said that BCIE would work with the Salvadoran Government “because it is a modern way of doing business.” Though being the first country to adopt BTC as widely is a challenge, they would “take it head-on and find the best way to protect the user,” Mossi added.

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Author: AnTy

Tunisia’s Economy Minister says He’s Going to Decriminalize Buying Bitcoin

Tunisia’s Economy Minister says He’s Going to Decriminalize Buying Bitcoin

The latest country working on changing its rules and regulations around cryptocurrencies is Tunisia which plans to decriminalize owning Bitcoin and crypto.

Tunisia’s minister of economy said over the weekend that he wants to change the law around cryptocurrencies which condemns people for mining cryptos and using them as payment. He said,

“I will change the law, we cannot put a Tunisian young man in prison for buying Bitcoin.”

Back in 2020, Marouane Abassi, Governor of the Central Bank of Tunisia, said that “we must follow” Bitcoin and the technology and prepare for effective monitoring of its use cases.

A year before that, Tunisia, along with Afghanistan, was looking to issue bitcoin-based bonds to help save their ravaged economies. At the time, Marouane said the country had created a special group to explore functionalities of a sovereign Bitcoin bond and that crypto and blockchain offers.

“central banks an efficient tool to combat money-laundering, manage remittances, fight cross-border terrorism and limit grey economies.”

The same year, in 2019, Tunisia became the first African country to move its national currency to a blockchain platform with the help of the universal contracting platform, Monetas.

“eDinar” can be used to make money transfers, pay for utility bills, and manage official government identification documents, which is also available to transfer between citizens at shops, cafes, and restaurants amidst the central bank’s plans to integrate it in cross-border payments and circumvent the need for US dollars.

Tunisia is currently in discussion with the International Monetary Fund (IMF) regarding a new program focused on the size of the loan as talks continue on reforms for the country’s troubled economy.

It is discussing phasing out subsidies as Tunisia is considering the gradual removal of subsidies on food, electricity, and natural gas by 2024.

Now, finally, the country may take some constructive steps towards cryptocurrencies as more and more countries announce their support for crypto.

El Salvador is one such crypto-friendly country that is all set to make Bitcoin legal tender and use volcanic geothermal energy to mine the cryptocurrency.

“The President of the Central American Bank (BCIE), a bank with 13.5 billion dollars in assets, supports our Bitcoin Law,” tweeted President Nayib Bukele over the weekend after the Central American Bank for Economic Integration (BCIE) said they would hold a press conference this week to talk about their approval of El Salvador’s support for Bitcoin.

Elsewhere, think tank Lobby New Zealand has sent a letter to Prime Minister Jacinda Ardern “asking that the New Zealand Government recognize Bitcoin as a foreign currency in eighty-six days when Bitcoin becomes legal tender in El Salvador.”

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Author: AnTy

Lightning Network Hits 1,500 BTC Capacity For the First Time as it Gains Traction in El Salvador

Lightning Network Hits 1,500 BTC Capacity For the First Time as it Gains Traction in El Salvador

Bitcoin layer 2 payments solution Lightning Network that enables faster and cheaper transactions has grown to surpass the capacity of 1,500 BTC for the first time.

Between the period of March 2019 and May 2020, the Lightning network capacity has been pretty stagnant, keeping between 800 and 1,100 BTC.

But about a year back, it started seeing growth which started to record a serious uptrend only this year. In January, LN capacity remained above 1,000 BTC only to hit 1,200 BTC for the first time in April this year.

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Besides network capacity, the number of channels is close to hitting 50,000, another new all-time high, which started to increase in August last year.

The number of nodes with and without channels is also on the same path, ready to hit 21,500 for the first time. Lightning nodes basically open payment channels with each other that are funded with BTC. When transactions are made across those channels, the channel balance is reflected without having it to be broadcasted on-chain creating a second layer on top of the bitcoin network and expanding its capabilities.

This growth can be attributed to El Salvador, which recently declared Bitcoin legal tender. Currently, Lightning-enabled wallets, Strike and Bitcoin Beach are the top free financial apps in the country followed by Binance and Crypto.com.

Interestingly, last week, Jack Dorsey hinted that Twitter will be integrating the payments network.

Lightning Network integration into Twitter or BlueSky is “only a matter of time,” said Dorsey in response to someone asking about the same after the Twitter founder appreciated Lightning Network-powered messaging app Sphinx Chat.

The long-term Bitcoin proponent recently also shared that his payments company Square is considering making a Bitcoin hardware wallet.

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Author: AnTy

Paul Tudor Jones Says 5% of Portfolio in BTC; A Store of Wealth the Same as Gold, Cash, & Commodities

Paul Tudor Jones Says 5% of Portfolio in Bitcoin; A Store of Wealth the Same as Gold, Cash, and Commodities

Paul Tudor Jones says “Go All-In” and “Buy Crypto”, Gold & Commodities if Fed Doesn’t Create A “Taper Tantrum” This Week

Legendary investor Paul Tudor Jones who called Bitcoin the “fastest horse” and was one of the first prominent investors to jump in on the cryptocurrency is now recommending 5% of a portfolio in the crypto asset.

To him, it is a way to “protect my wealth” as “over time it’s a great diversifier.”

“I look at bitcoin as a story of wealth. I look at crypto as a story of wealth. Others will argue this is a different ecosystem. It’s transactional in nature.”

Jones’ bullish comments on Bitcoin came during his interview on CNBC’s Squawk Box where he talked about inflation and how the Federal Reserve is handling monetary policy.

“You wonder why Bitcoin has a $2 trillion market cap and gold is at $1,865 an ounce. And the reason is that you have this dichotomy and policy that again questions the institution’s credibility.”

The hedge fund manager is paying close attention to this week’s Fed two-day policy meeting, which is scheduled to conclude Wednesday, in the light of recent higher consumer prices.

“If they treat these numbers… they were very material — if they treat them with nonchalance, I think it’s just a green light to bet heavily on every inflation trade.”

“If they say, ‘We’re on path, things are good,’ then I would just go all-in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold.”

This is because transitory inflation doesn’t work for him, that is not how he sees the world.

In contrast, “taper tantrum” would mean correction but “that doesn’t necessarily mean it’s over,” added the founder and chief investment officer of Tudor Investment Corp.

A Great Portfolio Diversifier

According to Jones, the crypto asset is a great portfolio diversifier and he prefers 5% of his portfolio in it just like cash, gold, and commodities.

“I like bitcoin as a portfolio diversifier. Everybody asks me what should I do with my bitcoin. The only thing I know for certain is I want 5% in gold, 5% in Bitcoin, 5% in cash, and 5% in commodities. I don’t know what I will do with the other 80%. I want to wait and see what the Fed will do because what they do will have a big impact.”

When asked about his stance on cryptocurrency, the billionaire investor likened Bitcoin to math, saying:

“I like the idea of investing in something that is reliable, consistent, honest, and 100% certain.”

It is Bitcoin’s mathematical certainty that has appealed to him as it is in contrast to the unpredictability of the central bank’s policy which has the involvement of the human element.

“Bitcoin has appealed to me because it is a way for me to invest in certainty. Again, I look at the difference between the Fed of 2013 and the Fed of 2021. I look at the difference between Trump and Biden. Do I want to have faith in that same reliability and consistency of human nature and the linear nature of human nature which we know is anything but that?”

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Author: AnTy

Head of Italy’s Stock Market Watchdog Concerned About ‘Savings,’ Calls for ‘Proper Oversight’ of Crypto

The Head of Italy’s Stock Market Watchdog Concerned About ‘Savings,’ Calls for ‘Proper Oversight’ of Crypto

Italy’s Companies and Exchange Commission President Paolo Savona is urging the government for clear regulation as the lack of it can damage the way the market operates, he said.

Like other officials, Savona is also calling for more regulation, arguing cryptocurrencies could facilitate illegal activity such as tax evasion, money laundering, and the financing of terrorism.

Additionally, the technology behind them prevents private and public entities from properly tracking and surveilling the markets. The head of Italy’s stock market regulator said on Monday as he presented the watchdog’s yearly report,

“Without proper oversight, there could be a worsening in market transparency, the basis of legality and rational choice for (market) operators.”

He further noted there were some 4,000-5,000 cryptos in circulation without any form of real regulation. And the push to introduce technological innovation led to a minimization of the effects that a lack of clear rules on the exchange can cause as such leading to the “intertwining of traditional and virtual assets,” which could induce liabilities towards daily savings.

“If we add to this Consob’s recent own experience in closing down in Italy hundreds of websites illegally gathering savings, the picture that emerges is worrying.”

According to Savona, cryptocurrencies could even undermine central banks’ ability to conduct monetary policy.

“If it takes too long at a European level to come up with a solution, (Italy) will have to take its own measures.”

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Author: AnTy

ETH/BTC Continues its Descent as Fees Drops Under $3, ConsenSys Launching MetaMask Institutional

Etehreum’s average fees have dropped lower than Bitcoin’s, while MetaMask Institutional comes as cryptocurrency funds, family offices, and financial institutions “increasingly” seek exposure to DeFi.

The price of Ether is subdued at around $2,500, following the 60% drop in its price from the all-time high of $4,380 last month. Ether actually more than doubled its price in just over a fortnight to hit this peak.

During the recent sell-off, Eth went as low as $1,725 on Coinbase.

Much like the weakness in the USD market, ETH is also feeling the woes against BTC.

ETH/BTC started its uptrend on March 29 when it was around 0.03. After two and a half months of a continuous uptrend, climbing to 0.082, a level last seen in May 2018, ETH/BTC topped out on May 15.

The subsequent sell-off during which ETH dropped harder than Bitcoin, as it usually happens – the opposite of a bull market where Eth price typically outperforms Bitcoin, ETH/BTC fell to 0.055.

As of writing, ETH/BTC is down at under 0.063 after climbing to 0.075 momentarily as Bitcoin leads the cryptocurrency space in strength in the current “crab” market, with El Salvador declaring it a legal tender acting as a likely catalyst.

Bitcoin leading the market is seen as a bullish scenario for the rest of the market because as long as Bitcoin maintains its strength and pumps while altcoins do not, the money will eventually rotate into them and pump them higher as we saw during the end of 2020 and into 2021. BTC 3.61% Bitcoin / USD BTCUSD $ 40,526.78
$1,463.023.61%
Volume 48.51 b Change $1,463.02 Open $40,526.78 Circulating 18.73 m Market Cap 759.27 b
5 h Bitcoin (BTC) Price Trading Analysis June 14: Market Outlook Bullish Continuation, Here’s Why 5 h Ethereum (ETH) Price Trading Analysis June 14; Market Outlook Is Slightly Bearish, Here’s Why 6 h Bitcoin Surges Above $41k — MacroStrategy, PTJ, FOMC Meeting, BCIE ‘Adopting BTC for Legal Use’

Seeking Exposure

The lack of price action has the Ethereum exchanges inflow volume reaching its lowest volume since November 15, 2020.

Akin to this absence of activity, the fees on the second-largest network have fallen to a single digit, last seen before the DeFi summer. The standard gas fee is currently a mere 5 gwei, as per ETHgas station, which skyrocketed to 2,000 gwei briefly for the first time ever during the market sell-off.

Average fees have gone down to $2.7, even lower than Bitcoin’s average of about $5, as per Blockchair.

The total daily fee on Ethereum is also on a downtrend, recording about 3.7 million on June 13, last seen in December, down from 117.2 million on May 11, according to Coin Metrics.

Amidst the lack of momentum, the popular Ethereum wallet MetaMask is launching its services for institutions to help them access and engage with DeFi.

With the decentralized finance ecosystem reaching past $40 billion, cryptocurrency funds, family offices, and financial institutions are “increasingly” seeking exposure to space, and through MetaMask Institutional, the company aims to enable funds to swap tokens, borrow, lend, invest, and interact with DeFi protocols and applications using its interface.

Prior to its commercial launch, ConsenSys is collaborating with a select group of partners, custodians, and professional trading firms to give feedback throughout beta testing.

“Ideal partners have customers already deploying capital into DeFi protocols,” it noted.

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Author: AnTy

Long-Term Chart Clearly Shows Bitcoin Still in an ‘Uptrend’ But Biggest Macro Headwinds Looms Over Price

“BTC needs another major catalyst to regain momentum and combat some of the uglier charts in the near term,” said Kevin Kelly, co-founder and head of global macro at Delphi Digital, in his latest report.

In April, Bitcoin hit its all-time high at nearly $65,000, and last month, it had a drawdown of 54% to 57% as the price fell to $30,000 on Coinbase and $28,000 on some exchanges. Today, that price finally crossed the $40k mark on the news that legendary investor, Paul Tudor Jones, has upped his allocation of bitcoin to 5% of his portfolio. He originally said 2% back in May of 2020.

Slashing of Bitcoins’ value by half was driven by the major unwind in leveraged positions, profit-taking following one of BTC’s best runs, and of course, the narrative of crypto-mining not being good for the environment.

“When everyone is leveraged long, it’s not a matter of if but when a major correction will take place.”

Wiping out all the gains of 2021 has the cryptocurrency’s year-to-date gains now at just over 35%. In comparison, ETH is up 236%, WTI 45.71%, and S&P 500 13.08%. Both gold and dollar’s YTD gains are negative by 1.20% and 0.57%, respectively.

BTC-v-Major-Asset-Classes-YTD

Still, more than 85% of Bitcoin UTXOs are in profit — “price bottoms following historical drawdowns of similar magnitude tended to coincide with a drop in the % of profitable UTXOs to at least ~55%.”

The total supply of Bitcoin by long-term holders on a percentage basis which recently bottomed at 58.5%, is also now back above 61%, a good sign for the longer term.

For now, BTC has strong support at around $30k, but if it breaks down, the prices can very well dive below $20k.

Not to mention, the death cross is coming — BTC’s 50-day MA is on the verge of crossing below its 200-day equivalent for the first time since March 2020. As we reported, this leads to a bullish golden cross like many times in history, but this could also turn out like 2017 when it solidified the bear market, which would mean the bottom may not be in quite yet.

However, there’s more to Bitcoin price than just technical analysis.

As we saw recently, the sentiments towards cryptocurrency have turned sour, with the Crypto Fear & Greed Index falling to its lowest level since the March 2020 sell-off. On May 30, the reading was 10, which has now gone up to 28.

One of the biggest macro headwinds to BTC, according to Kelly, is the deceleration in the growth of central bank asset purchases.

BTC-Peaks-v-Central-Bank-Asset-Growth

Historically, the price tends to peak at roughly the same time as y/y growth in major central bank balance sheets, which hit $8 trillion for the first time last week.

With the trend of large-scale debt monetization and asset purchases likely to continue, it spells bullish for Bitcoin, but the talks of tighter monetary policy in the face of rising inflation could serve as a headwind for BTC in the near term.

Bitcoin and crypto actually rated to sell-off around the time inflation expectations actually peaked in mid-May. “It’s an important distinction because markets trade on changes in expectations, not backward-looking data prints,” said Kelly.

BTC-Long-Term-Uptrend

However, not only “the long-term chart clearly shows BTC still in an uptrend” despite the recent drawdown and compared to previous cycles, the price trajectory still looks to be right on track, so unless $20k is retested, Bitcoin can continue higher.

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Author: AnTy

Financial Institutions ‘Should be Concerned’ of Competition from Crypto/DeFi Businesses: Mark Cuban

Financial Institutions ‘Should be Concerned’ of Competition from Crypto/DeFi Businesses: Mark Cuban

Billionaire Mark Cuban is talking about yield farming now, which is a core feature of most decentralized finance (DeFi) projects.

He explains how instead of starting a business and then hoping to make enough revenue like in the traditional world, in the crypto/DeFi space, they sell tokens to raise capital, reward Liquidity Providers and validators, and build communities that replace layers of bureaucracy.

This makes it “a model for future technology businesses and possibly all businesses,” he said.

When it comes to the valuation of these projects, Cuban shares he looks for current revenues, growth rates, defensibility, the strength of the community, and if they can continue to grow as fast or faster than the crypto industry as a whole.

Crypto is also decentralized in its governance where no one owns majority control, not only because of the ethos of DAOs but also because it doesn’t involve the

“ABSOLUTE STUPIDITY of our regulators forcing some of the most impactful and innovative entrepreneurs of this generation to foreign countries to run their businesses.”

The Brilliance of Crypto/DeFi

In a blog post on Sunday on the Dallas Mavericks site, Cuban talked about the DeFi project Polygon (MATIC) in which he recently invested.

An Ethereum layer 2 solution, Polygon basically provides tools that enable transactions using their Ethereum/Solidity smart contracts to take place as quickly and inexpensively as possible while still being able to bring in more money than they spend noted the Shark Tank investor. MATIC 4.62% Polygon / USD MATICUSD $ 1.55
$0.074.62%
Volume 1.62 b Change $0.07 Open $1.55 Circulating 6.29 b Market Cap 9.75 b
10 h Financial Institutions ‘Should be Concerned’ of Competition from Crypto/DeFi Businesses: Mark Cuban 3 d Polygon And 0x Team Up to Devote $10.5 Million Into Attracting New Users & Developers 6 d Layer-2 Scaling Solution Polygon Records Continued Growth, But May Not Bring Fees Down on Ethereum
ETH 2.65% Ethereum / USD ETHUSD $ 2,581.97
$68.422.65%
Volume 27.78 b Change $68.42 Open $2,581.97 Circulating 116.29 m Market Cap 300.26 b
5 h Ethereum (ETH) Price Trading Analysis June 14; Market Outlook Is Slightly Bearish, Here’s Why 9 h ETH/BTC Continues its Descent as Fees Drops Under $3, ConsenSys Launching MetaMask Institutional 10 h Long-Term Chart Clearly Shows Bitcoin Still in an ‘Uptrend’ But Biggest Macro Headwinds Looms Over Price

However, blockchain-based businesses diverge quickly from traditional software, and instead of building their businesses exclusively on a cloud computing platform, their businesses are decentralized.

Cuban finds it “brilliant” that here third parties like validators or miners put up their own capital to provide resources to support the network platform in exchange for rewards in the token of that network, which are created at “a near zero cost,” unlike centralized businesses in the traditional world where they would have had to raise millions and more.

“Where a crypto based business competes with a traditional business, the crypto business may have a significant cost of capital and cost of operations advantage. There are a lot of financial institutions that should be concerned.”

DeFi businesses like Polygon build their transaction volumes and fees by having enough widely and heavily used applications. And one-way projects like Polygon try to create a network effect is via DeFi based businesses.

Regulators Need to be Supportive

Here, Cuban talks about decentralized exchanges (DEX) whose “brilliant” part is liquidity providers (LPs) that put up the capital.

He has been actually testing out Polygon’s DEX QuickSwap, where he is a small LP where he is earning a percentage of the transaction volume for a particular pool. Cuban also provides liquidity on Bancor Network, where he gets rewards in the native BNT token. QUICK -4.01% QuickSwap / USD QUICKUSD $ 486.06
-$19.49-4.01%
Volume 5.29 m Change -$19.49 Open $486.06 Circulating 159.75 K Market Cap 77.65 m
BNT 2.70% Bancor / USD BNTUSD $ 4.06
$0.112.70%
Volume 61.97 m Change $0.11 Open $4.06 Circulating 210.11 m Market Cap 853.86 m
10 h Financial Institutions ‘Should be Concerned’ of Competition from Crypto/DeFi Businesses: Mark Cuban 3 w Cryptocurrency Exchange ShapeShift Reveals Gas Fee Mitigation Functionality With FOX Token Rewards 3 w DEX’s Record A New ATH in Volume; Decentralized Exchanges Hit First $100 Billion in May

“Have enough LPs and the exchange is far more capital efficient than a similar traditional exchange business and I get to make some money.”

Cuban also covered AAVE, which “looks like a bank” but is nowhere even close to it; rather, he described it as

“a completely automated, permissionless platform where there are no bankers, no buildings, no toasters, no vaults, no cash, no holding your money, no forms to fill out, no credit ratings involved.”

While all of these features make crypto the future, not every crypto blockchain or DeFi project will work. Not to mention, “crypto is brutally competitive,” still Cuban says he will choose crypto over traditional businesses.

But Cuban has issues with the regulators with “politicians shitting on the innovations crypto is fostering,” unlike the early days of the internet when innovation and entrepreneurs were supported.

“Hopefully this changes quickly or we will lose the next great growth engine that this country needs.”

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Author: AnTy